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tv   Your Money  CNN  July 18, 2010 3:00pm-4:00pm EDT

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>> okay. thanks so much, bonnie. >> sure. whim frederii'm fredricka wd at cnn. we'll have live coverage during our 4:00 p.m. eastern hour, and we'll also introduce you to a ten-year-old chef. he showed his support for healthy eating by cooking meals for his entire family. right now time for "your money." >> welcome to "your money." i'm jessica yellin in washington. a massive financial overhaul is headed to president obama's desk. here is what you need to know about it. the bill places a heavy emphasis on consumer protection, establishing an agency that aims to crack down on unfair practices by lenders and credit card companies. it also hopes to demistify the
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failing firms. the goal here is to end too big to fail. we'll ask if it does. and the risky sale that leads to derivatives will now be mostly deregulated. just three republican senators among those who voted in favor of it. joining me now to talk about it is chairman and director cambridge winter and editorial writer with the wall street journal. steven, i want to start with you. they claim this bill is the most massive reform on wall street since the great depression. would this have prevented a financial collapse? >> i don't believe it would. i think one of my big concerns is that this whole issue you brought up about too big to fail, i think a lot of people are wondering, are we going to have another scenario in two or five or ten years where we have to bail out banks again, and that's the thing that's most unpopular with the public right now, is this idea that we're
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going to have to continue to bail out big banks and big investment firms. i don't think it does anything to prevent bailouts in the future. >> i want you to listen to this from the minority leader in the house, john beahnor, who is no fan of the bill. >> i think the reform bill is ill-conceived, i think it's going to make credit harder for the american people to get, clearly harder for businesses to get, and the fact that it's going to punish every banker in america for the sins of a few on wall street, i think it's unwise. >> now, raj, you said this bill is not perfect. in your view, what is its strongest points? >> during the credit bubble, we were -- instead of allocating our collective services to commercial enterprises across the country, instead we ended up with i 7 or $8 trillion outflow
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in billing. one thing is to have a real live regulator who, if they were paying attention on this subject, would have stopped exotic projects as they became prevalent in 2004 to 2006. if you allow a bank to choose his own regulator, you're asking for trouble. those two things are a lot better off than they were before. >> i agree with what you said. i have two problems, though, on oversights in this bill. one is i think we both might agree that the credit rating agencies which were driving these aaa bond ratings, how in the world can those credit rating agencies even stay in business? and there's not much in this bill dealing with credit rating agencies. >> it's up to regulators to decide how much these credit rating agencies should be changed? >> the problem is these credit rating agencies were at the center of this storm, and i don't think there is enough oversight of the credit rating
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agency. >> and they're judging the w worthiness -- >> that's right, they were giving these junk loans. the other is fannie mae and freddie mac who were providing 100 maer 100% taxpayer guarantees on these bills. there is nothing in this bill that says that. >> let's go through the bill. what are the biggest wins here for, first, consumers? >> consumers are quite a bit better off, i suspect. the reason for that is over time consumer finance has been a classic race to the bottom business when it comes to practices. as someone who wants to compete with sort of honest and transparent practices, competing against people with shady and non-transparent practices, there is no way to win, and as a result everyone keeps perpetu e perpetuating a carnival of bad acts. >> what about for financial firms? >> it's a bit of a mixed bag.
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community banks, in particular. i suspect community banks right now are probably feeling pretty good about the fact they ran the table in terms of the agenda. they have some capital relief others don't have, they have assessment relief with the fdic and there are a couple other things for small banks. but i assure the long term problems for small banks do exist. small banks are going extinct and nothing in the bill protects on that. >> there is another way, though, that the administration is trying to change practices, and that's through the sec. the sec had this case against goldman sachs. they have now settled for the largest settlement a financial firm has ever paid, but i understand they lost two weeks for goldman. >> that's a pretty big chunk of change. goldman did have a gun to their head and basically sec said you have to pay this money and you have to pay your salary.
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i talked to some of the people at goldman, and they said, look, we still don't think we were guilty of any criminal charges here, but they thought the legal costs of going forward with this case would probably be more expensive than just to settle. >> and probably public relations damages, too. >> absolutely. >> does it send any kind of message to wall street, the fact that the sec extracted this from goldman? >> i think wall street will, but we have a bigger tendency to turn over the reins to people who are between 25 and 35 years old and making 1 to $2 million in cash every year. it's very difficult to get people to behave ethically over time. this is one problem and one that didn't exist 20 years ago. >> one of the problems is they say the people in government can never be as up to speed as the people in industry are, and so they're always behind the curve. >> it is so true. let's take derivatives. i don't think most members of congress even know what a
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derivative is. my point on this is, wait a minute, the banks didn't lose money on the derivatives, they lost money on those mortgages, those subprime mortgages. i agree with you, sometimes we deal with the last crisis, not the one ahead of us. i think this is a good example of that. >> what do we need next? >> the way in which the financial system prices risk really comes down to the debt markets. debt markets did a terrible job of pressing risk in the bubble. there are three reasons. >> what does that mean to a regular person? >> the financial system borrows money in order to lend it to you and me. that money has to come from somewhere. it comes from fixed investors worldwide. but those fixed income investors made terrible adjustments about risk. the bill solves one and leaves the other two to be solved kind of later. one is derivatives exposure are sort of okay and it was hard to get a sense from the investor
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how much risk they were taking. but rating agencies are still a proxy for way too much decision making in this market, and fannie and freddie are the largest examples. >> yes, because if you have these agencies putting out 100% taxpayer guarantees, then you're not going to have the oversight of the banks because they figure if we lose money, the taxpayers are going to pay for it. >> and we appreciate having you back. thanks to both of you. >> thank you. >> do you know your financial dna? it's a three-digit number that can determine whether you get a mortgage, a car loan, even a job. next we unlock the mystery of your credit score.
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great. okay, pickles! do your thing. [ bell rings ] that's amazing! i trained him myself. i meant the... okay. same coverage, more savings. now, that's progressive. call or click today. this is not a good number if you're trying to get a loan or credit card, but those who have a number of 500 or less, guess what? there is change under way. the financial reform bill will allow people to at least see their score. here is the author of great
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credit. ed, let me start with you. this new wall street reform bill actually helps people access their credit scores more easily. how much does it help consumers and in what other ways? >> well, the bill is, first of all, a landmark reform because it creates a new consumer bureau. it's the biggest since 1943. but getting access to your credit scores is part of it, but the bureau is a new consumer protection machine that will have the authority to regulate every financial product sold by a bank or non-bank, payday lender or whoever. so it's a very big victory for consumers. >> it's a big change, but lynette, i'm curious your take. is this credit score system broken? i'm astounded why i can't figure out why my scores are the way it is. i have three very different scores and it's all done in a black box. >> a lot of people have made that criticism and said the
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credit scoring system is broken, but really, i think the criticism is based on a lot of misunderstandings about how credit scoring works. first of all, some people have different credit scores because your credit scores are based on the underlying information that's contained in three different credit reports. then there are multiple forms of credit scores. the most popular one is the fico credit score. but there is also an experion score, an advantage score, so sometimes people get confused because it's not the same score a lender is looking at, for example. >> some people apply to college, admissions people look at it. if you're getting a job, some of your employers look at it. it has enormous power over your life but the consumer has very little say. i'm wondering could this financial reform have done more to help the consumer? >> i think the new financial reform bill is creating this new consumer financial protection bureau.
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it, for the first time, may be an agency that looks under the hood that looks into the black box. >> maybe. it's up to the regulator to decide that, isn't it? >> it's up to the regulators. there's a lot of new things in the law. but for the first time we have a regulator protecting jobs for you and me. >> lynette, on your take, why have they been reluctant to date to give us our credit scores? >> they've been reluctant to interfere with commerce. they didn't want to take part in any action that might be seen as diminishing a company's ability to make profits. let's be real, it's only been less than a decade, 2 001, that consumers were able to see their credit score at all, and that took a big part on advocates to say at least let us see the score. and they said this is proprietary information.
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our models and logistical work, behind the scenes work that we did to create that three-digit score, that's our own proprietary, digital information, so i think they just didn't want you involved in that way. even though you will be allowed to get a score free of charge if you get turned down, say, for a loan or if you get higher rates on your insurance than you would have gotten if you had a higher credit score, i think that in the future, we will see a time when consumers will get completely free credit scores. there's already some companies out there like credit carma, for example, that are doing this, so regulatory forces, competitive business forces will bring this information to consumers ultimately. >> all right, lynette, that would be great for the consumers if we get to that point. thanks so much for joining us. lynet lynette, ed, we're grateful. from businesses to voters, president obama has a big problem. what, if anything, does he plan to do about it? that's next.
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welcome book to "your money." i'm joined by political analyst gloria boriger. only 43% of the americans approve of the way president obama is handling the economy. back in 2006, th-- june, that w 50%. a big difference in just one month. >> the big thing for president obama is how he handles the economy, what happens to unemployment. people see that he's trying to do a whole bunch of different things. and what they're going to define him by come his reelection and also the democrats in the mid-term elections is how they feel about the direction of the country, how they feel about their own personal economic situation. and right now, they're giving
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him terrible grades. the worst thing for him is the spending right now. people worry about him spending in that same national post poll. 56% of the voters disapproved of the way the president is handling the deficit. >> let's get to that in a minute. i want to ask you about something the president said in an nbc interview. he told chuck todd that he believes people are going to remember when they go to the polls in november that he inherited a terrible economy, so it's not really basically his fault. true? >> that's what he would like. he said, look, i take responsibility going forward for what we did with the stimulus package, what we did with the bailout, what we did with the car companies and everybody else. but remember this did not occur in a vacuum, that he also inherited it. i think when we look back on these first couple years of the obama presidency, we're going to see two things. he had a choice. he had the agenda he was given
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by necessity which was all of these crises. then he had the agenda he chose, which was health care reform, for example. now he's going to try to get an energy bill through. financial regulation. and he didn't have to do all of that. and i think we're going to be able to see whether that was wise or unwise. >> he'll be judged for it one way or the other. >> exactly. >> there is another group of people who is unhappy with the agenda he chose, to use your words. the president this week was slammed by many business groups. the chamber of commerce accused president obama of, quote, dropping the ball when it comes to economic policy. and then also this week, the president opted for a, quote, quiet meeting although the photo op was released with warren buffett. >> the oracle, right? >> right, given business credentials. is this anti-president? >> it depends on what you see. when you talk to business folks, they say what we kracrave is a e
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stable environment. and because president obama has such an ambitious agenda, it's not stable. folks at the white house would say, okay, if you want to know how you're going to be regulated, you just found out. and here are the rules of the road, and now you're going to have to abide by them. if you talk to business, business will say, and you know this better than i do, jess, if you talk to business, business will say, you know, this is going cripple us, this kind of regulation. >> does it matter what business owners think? >> it does. i think in the end it will hurt him with some leaning republican voters, but the problem for plt obser president obama has done right now, particularly in the area of health kafr care reform, financ
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regulation, those things don't kick in for a year 20or two fro now, so maybe they'll say, maybe he's got a point there. but in you're a democrat, you want to be on this side of wall street or this side of main street, i think you'll choose main street. >> the topic most voters really care about, to cut or to spend? co-chair of the national commission on fiscal responsibility and reform, for him that choice seems very clear. >> this debt is like a cancer. it is truly going to destroy the country from within. that is a formula for disaster. >> he's talking about the deficit, all the spending. so the president definitely wants to bring down the deficit. he says his goal is to cut it by 2013. there are notices who warn that we need to do even more, that he needs to cut now, and then there are the people who want him to spend on the stimulus. can he win this fight?
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>> it's really tough, and what he has to do is big things. they have to do big things. and given the fact there is no bipartisanship in washington, it's very difficult to see how they do it. social security is sitting out there like the elephant on the table, medicare is sitting out there like the elephant on the table. >> can this one issue tank him? >> the deficit? >> yes. >> certainly right now it's not going to help democrats in the mid-term. let's see where they are in 2012. let's see whether this commission actually makes any progress on the issue of social security raising the retirement age. all kinds of issues are sitting out there, and the president tried and put a freeze on discretionary spending, which is such a small percentage. >> nominal, right? >> right. such a small percentage of the budget because the big things are military spending and entitlement spending. the automatic programs such as social security. so that is a huge issue out there. i think the secret plan or not
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so secret plan is we're in a ditch when it comes to the deficit. congress is a crisis-activated institution, but would they act before a presidential elections to fix social security? don't know. >> we'll watch that one with you. thank you, gloria. >> sure. up next, immigration. it is one of the hottest and most controversial topics out there right now. could amnesty actually be the answer to boosting the economy? [ male announcer ] prilosec otc traveled to fairbanks, alaska. home of one of the coldest, longest nights on the planet. and asked frequent heartburn sufferers to take prilosec otc for two weeks. the results?
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a controversial ucla study suggests that legalizing millions of undocumented immigrants could bring $1.5 trillion to the economy and could help generate up to 900,000 jobs. c clarissa martina decastro, mark corion. mark, i want to start with you. they say legalizing undocumented workers could not only drive up
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our revenue, but expand our economy and stimulate more growth. do you buy it? >> one of the things that has a grain of truth to it but is hugely exaggerated. there's no question that legalizing illegal immigrants would make their income go up a little bit and their tax payments go up a little bit. that is true, but not by very much. and once illegal immigrants are legalized, their use of taxpayer funds explodes because they're now -- they're eligible tofor things. we actually estimated that the cost to federal taxpayers and federal services would triple once illegal immigrants were legalized. >> there is a belief that immigrants would take jobs from hard-working americans that want them and they don't really stimulate economic growth in any way. is that an accurate description? >> i think it's inaccurate. if you look simply at most economic studies on the issue, you'll see that most economists
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say immigrants are a benefit to the economy. the way the economy works is that normally immigrants come to occupy jobs in the low-skill sector and the high-skill sector. most americans congregate around the middle. but we have an economy that needs people at all those sectors and all those levels. the question we have right now is that supply and demand, when jobs were available as workers were finding them, but because we had an illegal immigration system that wasn't working very well, they were finding each other outside of the system. that's what led to the population we have in the country illegally right now. what i think we should do is put a solution forward where those folks are going to be playing by the same rules as everybody else, those folks who are here illegally contributing to the economy and therefore leading to the contributions that that study showed. >> well, mark, you brought up the point that they will be paying more tax revenue, it just doesn't match the amount of services they'll use. this ucla study also shows that
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reforming immigration could provide $5.4 billion in tax revenue. if they're already here, why not just let them come and pay? >> illegal immigrants are already paying tax, they're just paying relatively small amounts of taxes. >> because why? >> through sales taxes, property taxes. >> and we're talking about an income tax if they were -- >> most of them are paying some of that because most of the immigrants have lied to their employers about their identity. once you legalize them, their tax bracket does go up some. their service now while they're illegal immigrants is not so much the illegality, it's that their very low-skilled workers. in a modern, post-democratic society like ours doesn't limit
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the amount of high school dropouts. let's just create more of our high school dropouts. >> i see you smile at that. why are you shaking your head? >> i think it's interesting because i think a lot of mark's work has been in trying to prevent -- making -- a lot of these arguments about the reason people are in the country, and now that we legalize them, it a huge problem. mostly what you oppose is immigration, and if you look at what economists say, if you look at the nature of our global world, is we close our doors whether it is for the folks that there will be demand for in the low-skill sector or frankly for the talent we need to supplement our competitive age at the high-scale sector, we are setting ourselves up. right now we're in an economic recession. it's the perfect time to figure out what kind of system we need so immigration habits can be regulated.
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>> how much should the economy factor in this debate? >> it clearly has to be one of the aspects but immigration has a lot of different angles to it. security, assimilation, economy, government services. and actually, they're all just different parts of the same problem. mass immigration is incompatible with a modern society. >> the group mark is associated with and actually supports is not only going to cost us billions and billions of dollars, it's going to impact the economy. immigration absolutely is part of having that competitive economy. the question is, can we get immigration reform done so we have a system that is working and seeing legality as opposed to the black market, which is what we have now, and frankly what a lot of your proposals are keeping. >> we'll have to leave it there, but thank you, both of you. >> thank you. there is a growing threat to this country and it comes from china.
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the trade deficit is growing, and the culprit once
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again is china. simply put, americans consume more than we produce. one major reason china produces goods at a fraction of the price than we can here in the u.s. in part is the way it values its currency. he is an economist and professor at the maryland school of business. peter, let's get right to it. you say we either get china to play fair or we're headed for a depression. >> absolutely. if china doesn't play fair, there is not enough demand for what americans make. to create jobs, businesses need customers and capital. the customer side, there is just not enough demand for what americans make because we spend so much in china and it's not just its cheap labor. it underdefines its currency by 40%. either we're going to grow very slowly or we're going to tank, but we're not going to recover quickly enough to generate jobs. >> let's turn to richard quest who is host of cnn's "quest
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hee means business." $220 billion sounds like a gap we need to close, but china produces goods a lot more cheaply which means folks like me in america gets to pay less for things, so what's wrong with that? >> jessica, it's very simple the the day you are prepared to pay more for the t-shirts on your back ask tnd the shoes on your , that's the day they will be produced domestically again. peter may be right that there's an imbalance in the relationship, but there's not a lot the u.s. can do about it unless it keeps sucking in those imports. it is changing. yes, i agree we had a very small evaluation of the chinese economy as a political stop just last month, but china is determined to increase its domestic demand in a way that japan was never prepared to do so.
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so i think it's a wheel that will turn. it will turn slowly, and i suspect not fast enough for my good friend, peter. >> so peter, your take on this. if president obama does get tough on china, is richard right, it just means folks in the u.s. would pay more for goods? >> you would pay more for certain things. however, it only works for you if you get to keep kroyour job. free trade is great if we move it somewhere else, like to china. >> richard, the last question. the u.s. consumer really has taken a beating, basically, and president obama says we're going to double exports to create jobs here at home. so where in the whole world, really, are these consumers for u.s. goods really going to come from? >> there are plenty of consumers. southeast asia and large parts of the continent are growing very fast. europe will start growing again, germany will start growing again.
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the problem is the price factor. the problem is americans love to shop on credit and they love to borrow, and even if they're deleveraging now which they are only to a limited extent, they will soon ramp it up again. it's the nature of the beast. until that fundamentally changes -- it goes back to the old-fashioned days. they used to say the japanese will spend and the americans won't save, and there isn't much change. >> not shocking the overseas fellow accusing us of consuming too much. thank you for joining us. richard, stay with us. we'll be back with you after this. next, it is the largest environmental disaster in u.s. history, but how much are americans outside the gulf feeling the oil crisis?
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the worst oil disaster in u.s. history has not only devastated wildlife, but also the livelihoods of many businessmen and women in the gulf. tyson slocum is president of the
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gu gulf issue. will we feel an impact elsewhere in the united states? >> we will eventually. right now it is just a geographic crisis for those living in the coastal gulf states, particularly those who rely on commercial fishing and tourism for their livelihoods. those folks have been heavily impact and the payments by bp so far have not been adequate to make up for their lost income. in terms of energy prices, though, the vast majority of americans were not experiencing price increases because for all the hype about drill, baby, drill, the offshore drilling moratorium and the spill has not sent panic with energy traders, so the price of oil and gasoline have remained very stable. and even though fish from the gulf of mexico represents about a fifth of u.s. demand, we haven't seen fish prices increase, either.
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>> let's get to that. i want to show you a chart that shows oil prices. this is loast year. you can see the spike iness in past times extending out. it's been pretty stable since the time we've seen this bill. in the past, in hurricanes or the threat of war, we've seen these spikes, but why not now? >> i think it reflects the business in the gulf is not a huge piece of supply and demand. while it might be big to a handful of offshore drilling fimplz, in the scheme of global supply and demand, it's just not very much. we saw in the past huge speculation-driven price spikes due to hurricanes and the threat of terrorism overseas, but now with wall street being reined in, the ability of those speculators to drive prices up for crises like that is a lot more limited. >> interesting. you also mentioned the price of
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seafood. i really expected to see fish and seafood skyrocket on menus. it hasn't. is that because we get so much of our seafood outside of american waters? >> yeah, we're still seeing a large number of american i imports, but we might see that in the future because we still have millions of barrels of oil that has seeped into the gulf of mexico, we have hundreds of thousands of gallons of chemical disbursement, and we haven't adequately measured what the impact of those chemicals and oil have been on the gulf of mexico ecosystem. i think the jury is out in terms of what the total impact on commercial fishing is going to be. we will see a potential threat to higher food prices as a result. >> we just don't know how much? >> right. >> this is interesting to me. despite the environmental damage, and there is obviously a huge emotional and psychological toll this spill is taking.
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amazing amazingly, by some estimates, because of the massive cleanup effort and the amount of money being spent on that, it still might actually contribute to an increased gdp? >> i'm not sure about that. maybe in the short term because you've got a lot of spending on contracters and all these folks, but once the oil is removed from beaches, the impact on commercial fishing is still going to be felt. just because we can't see the oil coming up on the beaches, there has been a profound impact on killing marine life in the gulf of mexico. i think tourists still may be scared away, particularly those coming from europe and overseas. so even though we might see a temporary blip in temporary employment for the cleanup efforts, i think there's going to be some long-term implications for the folks in the gulf that's very serious. we also have to look at the potential impact on federal taxpayers. because while bp has set up a $20 million escrow account,
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that's not going to be enough. and if bp starts encountering some financial problems, who is going to pay the bills? i think there is a risk of that. >> there is another risk about where taxpayers might take the cost. do you see the clean energy bill having an impact? >> it depends what type of clean energy bill. i think they need to take reform over what's regulated or not regulated in this case. we have a big oil company that's accountable, but then there's efforts to try to get a broader energy bill to talk about the long-term problems of our oil addiction, to try to incentivize clean energy, to maybe put a price on carbon so we can start addressing climate change, and addressing climate change, there will be some cost to consumers,
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but right now consumers are bearing a lot of costs of imported oil and obviously the environmental impacts of our oil addiction. >> tyson, thank you so much for joining us. tyson slocum, president of the energy program. they're raising new things about the cost of bp. richard, there are now questions of what role bp may have played in the early release of that terrorist of the pan am flight that exploded over lockerbie, ireland. we understand you sat down with a libyan oil minister and asked him about that. what did he tell you? >> the allegation is substantially this. as the price for bp being granted the right to drill offshore in libya, the british agreed to release magrawe, the
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only person convicted of the lockerbie bombings. bp admits there were concerns t harming commercial interests. the british government has said in the past that commercial interests did play a part in the concerns. however, everybody always denies that there was a direct quid pro quo for releasing al-megrahi, currently critically ill in libya. it's important to understand that bit of background, because when i sat down with the inlibyan oil minister, he was the man who did the negotiations with bp. he was the man who denies categorically that there was any give-and-take for elle-megrahi for bp to get rights to drill. >> is there any indication that there's reason to believe these folks are being dishonest? there's folks on capitol hill
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who believe there's something not being said. >> i mean, you take people at their face value. you have to. but just one other point to listen to. i asked the minister exactly that. was he worried about the senators and congressmen, about to have hearings on the hill. and i think this is as close as you're ever going to get to a minister saying good luck to them. >> all right. richard, impressive interview, impressive get and we know you're coming back with a lighter story next. coming up next, the story is the man who claims he has the key to losing weight. plus, here's a roman's numeral for you and she's not even here. what is nine pounds ten ounces and exactly one week old this weekend? that answer is next. i work for a different insurance company. my auto policy's just getting a little too expensive. with progressive, you get the "name your price" option, so we build a policy to fit your budget. wow! the price gun. ♪ ah! wish we had this.
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despite unprecedented amounts of information on how to eat healthfully, obesity is on the rise around the world. richard quest is back from
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london. he recently sat down with a the ceo of weight watchers and it turns out the company is not doing as well as you might think. >> it was as tough an economic time as we've seen. and any business that is in consumer discretionary certainly felt the effects of that. but i think the fundamental thing is that the economies come and go, but the issue of obesity is not going away. and the suitability and the directness of the weight watchers approach for addressing this from a societal perspective has never been more apparent and obvious. >> let's stay with your numbers. if you believe it is a result of the recession, ergo, your next quarter and the rest of the year should show better. are you seeing that? >> we just finished our second quarter right now and we're not going to be reporting earnings for a few weeks now. soy can't talk about what's going on in the past three months. other than to say that the fundamentals of our business
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haven't changed. in other words, business was negatively affected by recession. at som point recession begins to ameliorate, that goes away. the fundamental demand for what we do is still there and it's going to get only stronger. >> how have you had to adapt your fundamental message, which is basically people coming together for peer and group support in the weight loss process? but more and more of us are preferring us online. we are cloisterred with our computers. >> what we're finding is most effective is we're taking the best elements of online and combining it with the best elements of face-to-face interaction, the group. and those two things working together is an unbelievably powerful combination. i would suggest to you that weight watchers was the original social networking suspect. of course i would say that. we're doing all the things without stepping way from who we are, we're also stepping into
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where the future is. >> and which countries do you want to be? >> we have a nascent business in china. >> nascent? >> brand new. we're in shanghai. but we think that it's, we think that there's going to be wherever, wherever obesity is becoming an issue, we'll be. >> on the china question, as a ceo, you've seen the debate at the moment. whether it's american ceos saying that china doesn't want them or they're finding it very difficult. as a chief executive how are you finding it getting into china and doing business there? >> it's very early days for us. but we're very pleased with what we see in china right now. we think that there's a fundamental need for what we do. we see the consumer being responsive to it. and for us, it's been a very constructive process. you know, i'm not in the business of selling wind turbines, i'm in the business of helping people adopt change of life. and for the kind of business we're in, everything we've seen in china is terrific. >> we haven't touched our lunch.
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look, you say everything in moderation. >> you know, actually i think this might be a, that's a merangue. which is a less-bad choice as far as desserts go. so your effort to stump me with calorie-laden food hasn't been completely successful. >> drat it! thank you very much. >> thanks. that meringue, jessica, lasted mere seconds before being devoured. >> i would be so intimidated to lunch with the head of weight watchers. what did you guys eat before the mering uchb e? >> all i had was a little bit of salmon on the bread and he left the bread. which i then polished off afterwards. >> i bet. did he tell you what is on the weight watchers diet in china. i'm guessing no kung pao chicken? >> i would guess. at the end of the day he makes a point, dieting is one thing,
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learning how to eat better and behavioral changes, that's something else, something more difficult. >> inch i've heard that soel ma times. that wraps it up, "your money" with ali velshi will be back next week. but if you're wondering where ali's co-host, christine romans is, she's on a very special assignment. she and her husband, ed, welcomed this little baby boy, cute edward arthur, he came in last sunday night, weighing in at nine pounds, ten ounces and joins older brothers, billy and finn. she didn't even look pregnant, did she in. >> trust christine to give birth in the middle of earnings season. and produce such a large spinoff and a subsidiary that i have no doubt will produce good results in the future. she is now a conglomerate with all of those
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